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Summary Oil rebounded by 2 percent following encouraging economic news in the US and Europe.
The Commerce Department said the US economy grew faster in the spring than previously estimated, while the Labor Department said that the number of people seeking unemployment benefits fell sharply last week.Meanwhile, German lawmakers took a major step toward dealing with the regions debt crisis by strengthening a bailout fund. That eased worries that Europes debt problems could spread and lead to another recession.Benchmark crude rose $1.60, or 2 percent, to $82.81 per barrel in afternoon trading in New York. Brent crude, which is used to price oil thats produced overseas, was 60 cents higher at $104.41 a barrel in London.Thursdays rise continues the roller coaster ride for oil prices this month. Oil tumbled 8 percent from Wednesday to Friday last week, then rebounded 6 percent by Tuesday, then fell nearly 4 percent on Wednesday.Tepid economic growth in the US and other major world economies has forced experts to backtrack on demand forecasts for this year. As concerns of another recession crept into energy markets, traders stayed focused on the European debt crisis and government reports on the state of the US economy.The fear factor has simply gone up, independent oil analyst Jim Ritterbusch said. Ive never seen volatility like this, and Ive been watching oil for 28 years.An extended rise or drop in oil will eventually affect gasoline prices. So far, oil hasnt moved by much, wavering between about $80 and $90 a barrel for the past two months.In other energy trading, natural gas futures were down a penny at $3.787 per 1,000 cubic feet. Prices held steady after the government reported that natural gas supplies last week rose more than analysts expected.Heating oil rose 1.68 cents to $2.8439 per gallon and gasoline futures were virtually unchanged at $2.5757 per gallon.
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